Saudis seek to cut Iran’s oil output to sanctions era: Zanganeh

April 18, 2016 - 18:42

TEHRAN – In an indirect reference to Saudi Arabia Oil Minister Bijan Namdar Zanganeh said on Monday that “certain countries” were seeking to use the oil freeze plan as a new tool to cut Iran’s oil output to the pre-sanctions level.

In reference to the failure of oil freeze talks in Doha, Qatar, Zanganeh said these countries, which were diametrically opposed to the lifting of sanctions against Iran, have started serious efforts to scale down oil prices. However, the minister said, the “measure is just an illusion.”

He said the Islamic Republic supports any coordinating measure between OPEC and non-OPEC producers to bring stability back to the oil market, Mehr quoted Zanganeh as saying.

Iran has boosted output by about 400,00 barrels per day following the lifting of sanctions in January, putting average output last month at about 3.2m bpd, according to the International Energy Agency. Tehran has said it would boost output within a year, ultimately reaching pre-sanction production levels of around 4m bpd seen in 2010-2011.

Saudi Arabia resorted to different ploys to abort the July 2015 nuclear deal between Iran and great powers which terminates all economic sanctions, including western oil embargo, on Iran.

Russia says Iran not responsible for failure of Doha talks

After the Doha meeting to freeze output ended without a deal, with Saudi Arabia insisting Iran should be part of any agreement, Alexander Novak, Russia’s oil minister, said Iran was not responsible for the failure, TASS reported.

Novak said at a press conference after the talks that some countries changed their position right before the meeting after agreeing to an earlier draft.

“I thought countries that came here, came to agree and not to discuss the need of joining in of those countries that were not participating,” he said. “We had been disputing today a lot, and that was because some countries from OPEC changed their positions in the morning.”

Delegates said Saudi Arabia had in effect torn up an earlier draft of the deal as it decided it could not be party to an agreement that would give Iran any leeway. Tehran had refused to join the freeze as it rebuilds its oil exports after years of sanctions.

Qatar respects Iran’s position

Speaking to reporters after the summit, Mohammed bin Saleh al-Sada, Qatar’s energy and industry minister, replied to a question whether Iran had anything to do with the breakdown of the talks, saying, “We of course respect their position and ... we still don’t know how the future will unroll.”

Al-Sada, who is serving as OPEC’s president, said, “The freeze could be more effective definitely if major producers, be it from OPEC members like Iran and others, as well as non-OPEC members, are included in the freeze,” Pltts reported.

Oil prices fall after Doha meeting

Oil prices sank after attempts to freeze output ended without a result.

Brent crude futures fell almost 7 percent in early trading on Monday before recovering to $40.97 per barrel, still down 2.15 percent since their last settlement. Benchmark U.S. crude futures were down more than 5 percent at $38.31 a barrel.

MG/PA

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